EVENT PRESENTATIONS

EVENT PHOTOS

Intro

Roundtables and panels aimed at informing and assessing the Duque government’s vision and outlook for the energy sector and role for oil & gas and renewables

Energy Sector and Role for Oil & Gas and Renewables

Ivan Duque assumed the presidency of Colombia on August 7. When it comes to energy, his administration will be immediately confronted by a sector that has been somewhat rudderless in terms of its policy objectives and strategic direction. The inherent challenges facing the sector are heightened by the regional and global context of the energy transformation and the rush to innovate and incorporate a growing level of competitive non-hydro renewables. In some segments of the energy sector, such as hydrocarbons, there is what might be best described as paralysis. In others, such as how to manage renewable energy integration, there are laws and regulations under development but that are relatively unclear as to the implementation strategy and overarching goals.

Long the darling of oil & gas investors on the back of major policy and regulatory changes in the early 2000’s, Colombia has since seen its oil production slip due to setbacks derived from the global price collapse, permitting bottlenecks and increasing citizen opposition. The national oil company, Ecopetrol, has in many ways become a microcosm of the broader issues facing Colombia’s hydrocarbons sector. Indeed, the strategic vision and role the Duque government ascribes and sets forth at Ecopetrol will be important. Moreover, the fiscal imbalance created by the oil boom has generated an important debate and confounded the government’s strategic vision for the sector. Add to the mix the all-consuming nature of the Peace Process during the Santos years and it is readily apparent that the Duque administration will have to quickly establish a road map, or at least an outline for how he and his energy team envision the role of oil. Recent remarks and comments surrounding the need to reduce Colombia’s oil dependency and pursue a low-carbon energy outlook, as well as the fracking question make it ever more imperative.

Similar to many countries in the region, Colombia has benefited from an electric sector comprised largely of hydropower that allow for critical supply and historical cost upsides. At the same time the increasing impact and variability caused by climatic events and particularly El Niño effects have occasionally pushed the electric sector to the brink. These elements in addition to efforts to diversify the energy matrix have led to policy steps and legislation to boost unconventional renewables into the mix. In 2010, goals were set to increase its non-hydro generation to 6.5% (on grid) and 30% (off-grid areas) by 2020. Additionally, legislation and regulations passed and developed over the last four years have provided an important outline for Colombia’s renewable energy development, but in many ways the forward progress has been only incremental. When compared to other markets in Latin America, Colombia has lagged in terms of policy implementation and attracting investment in renewables. The Duque administration has seemingly begun to fill this void by supporting the country’s first renewable energy auction in the coming months.

Speakers

Luis Miguel Morelli N., President, National Hydrocarbons Agency (ANH)

Camilo Táutiva Mancera, Office Chief of Regulatory and Business Affairs, Ministry of Mines and Energy

Continuing with the last day of our #LJC2020 to discuss #gas and #power update -pipelines, #power markets and #renewables moderated by @MontseRamiroX @vozexpertamx with @memo_z @LeoBeltranR, Juancho Eekhout @IEnova_MX and Gerardo Serrato from Hartree Partners #LJC2020